In today’s briefing:
- Samvardhana Motherson QIP – Well Flagged US$780m QIP in a Decent Name
- K Bank IPO Valuation Analysis
- BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- K Bank IPO – The Positives – Fast Growth
- Pre-IPO LinkChem Technology – The Business and the Concerns Behind
Samvardhana Motherson QIP – Well Flagged US$780m QIP in a Decent Name
- Samvardhana Motherson International Ltd (MOTHERSO IN) is looking to raise up to US$780m in its QIP. Together with the offering is a US$270m compulsory convertible debenture (CCD) offering.
- The deal is very well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
K Bank IPO Valuation Analysis
- Our base case valuation of K Bank is target price of 9,151 won per share, which is 4% lower than the low end of the IPO price range.
- Given the lack of upside in our target price relative to the IPO price range, we would avoid in subscribing to the IPO.
- Our base case valuation is based on 1.6x P/B multiple using the company’s equity post IPO (2.35 trillion won).
BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- BioAge Labs, a clinical-stage biopharma company backed by a leading syndicate of biotech investors, filed to go public in the United States.
- Anti aging and obesity biopharma startup is purely focused on chronic metabolic diseases and established partner agreements with Amgen and Eli Lilly.
- I have a positive view of upcoming BioAge Labs IPO and expect a strong first-day return above the IPO offer price.
K Bank IPO – The Positives – Fast Growth
- K Bank (279570 KS) plans to raise up to US$740m in its upcoming South Korean IPO.
- K Bank is one of three Internet-only banks in Korea. It provides a full range of commercial banking products and services.
- In this note, we talk about the positive aspects of the deal.
Pre-IPO LinkChem Technology – The Business and the Concerns Behind
- The sudden high growth in 2023 was benefited from the cooperation with related party Shandong LinkChem. Is the performance growth driven by LinkChem’s reliance on related party transactions sustainable?
- LinkChem relies heavily on limited number of customers to contribute performance but the customer stability is not strong.Due to “low voice” in front of customers, cash flow is under pressure.
- The barrier of terbium chloride product is not high and LinkChem will face fierce competition in the future, leading to decreasing YoY growth revenue. Valuation should be lower than peers.
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